How to Strategically Navigate the New Economic Normal?
One of the most confusing things about our current economic times is the complexity of it all. Wage growth is anemic, yet corporations are flush with cash. Interest rates are historically low, yet business investments are lagging. Market volatility is as severe as it has ever been creating uncertainty, and economic growth is slow.
We can expect this economic and geo-political volatility to continue. It will most likely be a rollercoaster ride driven by the latest news cycle like China, war in the Middle East, declining oil prices and more. What is an owner, CEO and his/her leaders to do? How can anyone “plan” for the future when so much is going on?
There is a way to stay ahead of this uncertainty. This is where strategy management has a role and can be the business process that will keep your organization above all the noise. Having a well-articulated strategy and managing that strategy will give your organization the confidence it needs to move forward in such a turbulent environment. It requires tenacity and commitment, along with organizational agility. Commitment to the strategy and a process in place that will cause discussion that will enable adjustments as needed to deal with market realities. The truth is, no one can predict the future, and in a volatile global economy, being both proactive and flexible is the key to success.
Which leads us to three considerations that are the foundation of making strategy management a part of the fabric of how you and your leadership team makes decisions.
Strategy is a Dynamic Process – Key to success in an ever shifting marketplace is to have the courage to change course when necessary. Be prepared to make adjustments to your plan, both internally and externally, to adapt to the changing environment. Your objectives don’t change, but how you achieve them most likely will.
Strategy Management is a Continuous Process – because of the economic and geo-political instability, a process to constantly and predictably measure and monitor progress is vital to success. Don’t depend on a once a year offsite. Rather, form a strategy steering committee and charge it with the responsibility of monitoring progress against the strategy at least quarterly. Business opportunities and challenges come up all year, not once a year, and usually when you least expect it. These important decisions need to rise up to the leadership immediately so that decisions can be made quickly and efficiently.
Strategy Management is Everyone’s Responsibility – tapping into the organization’s knowledge and experience can be a competitive advantage. Every person in your organization should have a deep understanding of his/her strategy related responsibility. Be sure you communicate the strategy often and repeatedly. If your employees understand the strategy, they will welcome an opportunity to contribute to the discussion and solutions. Embrace this by engaging your employees in the strategy management process. You will be thankful you did.
At Albu Consulting, we take this new economic normal seriously and this is why we are so passionate about strategy management and the important role it plays in being a successful business. How are you dealing with this new economic normal? What experiences can you share with us?